[Federal Register Volume 83, Number 138 (Wednesday, July 18, 2018)]
[Proposed Rules]
[Pages 33894-33899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15252]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2017-0276; FRL-9980-93--Region 5]


Air Plan Approval; Illinois; Permit-by-Rule Provisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve revisions to the Illinois State Implementation Plan (SIP) to 
establish a general framework for permits-by-rule (PBR) and 
specifically provide a PBR for small boilers. In addition, EPA is 
proposing to approve other state provisions that are affected by the 
addition of the PBR regulations, as well as minor changes in 
nomenclature.

DATES: Comments must be received on or before August 17, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2017-0276 at http://www.regulations.gov, or via email to 
[email protected]. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Danny Marcus, Environmental Engineer, 
Air Permits Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 353-8781, [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. Background
    A. Minor New Source Review
    B. Title V Operating Permit Program
    C. Permits-by-Rule
II. Discussion of the State's Submittal
    A. Rule Revisions That EPA Is Proposing To Approve
    B. Rule Revision for Which EPA Is Taking No Action
III. What is EPA's analysis?
    A. The Revisions Are Consistent With Section 110(a)(2)(C) of the 
CAA and the Applicable Regulations
    B. The Revisions Do Not Interfere With Any Applicable CAA 
Requirement Under Section 110(l) of the CAA
IV. What action is EPA taking?
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Background

A. Minor New Source Review

    Section 110(a)(2)(C) of the Clean Air Act (CAA) requires that every 
SIP include a program to regulate the construction and modification of 
stationary sources to ensure attainment and maintenance of the National 
Ambient Air Quality Standards (NAAQS). Parts C and D of the CAA 
(sections 160 through 190) require the establishment of a New Source 
Review (NSR) program for sources whose Potential to Emit (PTE) is above 
certain air pollution thresholds. For such ``major sources,'' 
Prevention of Significant Deterioration (PSD) provisions will generally 
apply in areas that have attained the NAAQS, while Nonattainment New 
Source Review (NNSR) provisions will apply in areas that have not 
attained the NAAQS.
    The permitting program for minor sources is addressed by section 
110(a)(2)(C) of the CAA. A minor source is one whose PTE is lower than 
the major NSR applicability threshold for a particular pollutant. 
States must develop minor NSR programs to comply with the Federal 
requirements for state minor NSR programs contained in 40 CFR 51.160 
through 51.164. The provisions of a minor NSR program must include 
legally enforceable procedures that enable the permitting authority to 
determine whether the construction or modification of a source will 
result in a violation of applicable portions of the control strategy or 
interfere with attainment or maintenance of a NAAQS. 40 CFR 51.160(a).
    The minor NSR requirements are considerably less prescriptive than 
those for major sources. EPA has long recognized that such rules are an 
effective means to ensure that sources whose emissions are less than 
the major source thresholds are nonetheless reviewed to ensure 
protection of the NAAQS. See, e.g., 76 FR 38748, 38752 (July 1, 2011). 
The Illinois Environmental Protection Agency (IEPA) implements the 
minor source NSR program under 35 Illinois Administrative Code (IAC) 
201. EPA approved Illinois' minor NSR program on December 17, 1992 (57 
FR 59928).

B. Title V Operating Permit Program

    Title V of the CAA (sections 501 through 507) requires that all 
major stationary sources have permits that contain all requirements 
that are applicable under the CAA, as well as adequate monitoring. 
Title V and its implementing regulations at 40 CFR part 70 provide for 
the establishment of comprehensive State air quality operating 
permitting programs consistent with the requirements of title V. The 
title V operating permit program in Illinois, which EPA fully approved 
on November 30, 2001, is referred to as the Clean Air Act Permit 
Program or ``CAAPP'' (66 FR 62946, December 4,

[[Page 33895]]

2001). Pursuant to section 502(a) of the CAA, it is unlawful for any 
person to, among other things, operate a major source subject to title 
V except in compliance with a title V permit. All ``major sources'' of 
air pollutants, and certain other sources, must obtain and operate in 
compliance with a title V operating permit. 40 CFR 70.3.

C. Permits-By-Rule

    A PBR is a mechanism for streamlining the issuance of 
preconstruction permits. PBRs use a regulatory-type structure (i.e., 
the permit requirements are codified in the IAC) to pre-authorize 
construction and modification activities carried out in accordance with 
the codified requirements. PBR programs establish a streamlined process 
that allows an individual applicant to notify the reviewing authority 
that it meets the eligibility criteria for the permit and the permit 
conditions rather than going through a reviewing authority review and 
approval process. This ``notification'' process streamlines permitting 
for eligible sources and makes it easier for the reviewing authority to 
implement the PBR program compared to traditional site-specific 
permits. See, e.g., General Permits and Permits by Rule for the Federal 
Minor New Source Review Program in Indian Country for Five Source 
Categories (80 FR 25068, May 1, 2015). A PBR contains qualifying 
criteria, emission limitations, conditions for operation, requirements 
for recordkeeping and reporting, and standard permitting conditions 
that are similar to those found in individual construction permits for 
a particular emission source.
    On May 2, 2017, IEPA submitted to EPA the following SIP revision 
requests, which are largely related to a PBR program: (1) IEPA revision 
to 35 IAC Part 201 to add a new Subpart M (35 IAC 201.500 through 
201.540), which establishes general provisions for a PBR program; (2) 
IEPA revision to Part 201 to add a new Subpart N to 35 IAC Part 201 (35 
IAC 201.600 through 201.635), which establishes PBR requirements for 
boilers burning certain types of fuel and with heat input capacities of 
less than or equal to 100 Million British Thermal Units per Hour 
(MMBtu/hr); (3) IEPA changes to certain abbreviations, definitions, and 
incorporation by reference (35 IAC 201.103, 35 IAC 201.104, and 35 IAC 
211.4720), which are all mostly related to the new PBR rules; and (4) 
IEPA minor changes in nomenclature at 35 IAC 201.146.

II. Discussion of the State's Submittal

A. Rule Revisions That EPA Is Proposing To Approve

35 IAC Part 201, Subpart M: Permit By Rule--General Provisions
    Subpart M establishes general provisions for all PBRs. The owner or 
operator of a source seeking a PBR for an emission unit covered by an 
applicable PBR Subpart must comply with all applicable requirements of 
35 IAC Part 201, Subpart M, and the applicable PBR Subpart for the type 
of emission unit for which a construction permit is required. 
Compliance with the PBR provisions satisfies the requirement to apply 
for and obtain a construction permit prior to construction or 
modification of the emission unit. 35 IAC 201.500.
    For an owner or operator of a source to be eligible to obtain a PBR 
for a proposed or modified emission unit: (1) The emission unit must be 
located at a title V source that has a title V permit; (2) there must 
be a PBR that has become effective within 35 IAC Part 201 that is 
applicable to the emission unit; (3) the emission unit, either alone or 
as part of a larger project, must not be subject to any pre-
construction permitting requirements for a major new source or major 
modification pursuant to 40 CFR 52.21 or section 9.1(c) of the Illinois 
Environmental Protection Act (Illinois Act), including 35 IAC Part 203 
or any other regulations adopted pursuant to section 9.1(c) of the 
Illinois Act; and (4) the emission unit must not be an element in a 
larger project that otherwise requires a construction permit pursuant 
to this Part or the Illinois Act. 35 IAC 201.505(a)(1-4).
    Furthermore, the general provisions specify that a PBR does not: 
(1) Exempt any owner or operator from the requirements of the CAA or 
the Illinois Act, including determining whether construction or 
modification of an emission unit, by itself or part of a project, 
constitutes a major modification or major source; (2) exempt any owner 
or operator from any requirement to notify IEPA or list insignificant 
activities and emission levels for title V permit purposes; (3) relieve 
the owner or operator of a source from the requirement of including 
emissions associated with the emission unit in any preconstruction 
permitting application for a major new source or major modification 
pursuant to 40 CFR 52.21 or Section 9(c) of the Illinois Act, including 
35 IAC 203 and any other regulations adopted pursuant to Section 9(c) 
of the Illinois Act; (4) relieve the owner or operator of the emission 
unit from any applicable requirements of Section 39.5 of the Illinois 
Act for the emission unit, including any requirement to submit a timely 
application for a new or modified title V permit that addresses the 
emission unit; or (5) relieve the owner or operator of the source from 
compliance with other applicable statutes and regulations of the United 
States or the State of Illinois, or with applicable local laws, 
ordinances, and regulations. 35 IAC 201.505(b).
    If the owner or operator seeking to construct or modify an emission 
unit under Illinois' PBR program meets the applicability criteria under 
the general provisions and the applicable PBR Subpart, then the owner 
or operator must submit a complete ``Notification,'' including fees, 
prior to commencing construction or modification of the emission unit. 
Section 35 IAC 201.510 provides the information that the owner or 
operator must submit in the Notification. This includes: (1) General 
background information about the emission unit; (2) a statement as to 
whether the unit will be an element in a larger project, and if it is, 
a statement describing why a construction permit will not be required 
for any element of that project, and a demonstration that the potential 
emissions of each regulated NSR pollutant from the project will be less 
than 80 percent of the relevant ``significant emission rates'' under 40 
CFR 52.21 and 35 IAC Part 203; (3) identification of construction 
permits and PBRs received in the last two years and a demonstration 
that the requested PBR should not be aggregated with, and considered an 
element of, any of these projects that were addressed by the 
construction projects and PBRs identified; (4) specific information 
required by the applicable PBR Subpart Notification requirement; and 
(5) a statement noting whether the source is major or non-major for 
emissions of Hazardous Air Pollutants (HAPs), and if the source is non-
major, documentation for the determination. IEPA is required to 
acknowledge receipt of the Notification within 30 days.
    The owner or operator may commence construction or modification of 
the emission unit after submittal of the complete Notification. If the 
submitted Notification is incomplete, the emission unit is not covered 
by a PBR and the owner or operator has not met the requirement to apply 
for and to obtain a construction permit. 35 IAC 201.515. If the owner 
or operator proposes to modify the emission unit covered by a PBR, the 
owner or operator must submit a new Notification for a PBR or obtain a 
construction permit for

[[Page 33896]]

the modification. If the proposed modification causes the source at 
which an emission unit covered by a PBR is located to become a major 
source of HAPs, the owner or operator must submit a new Notification 
for a PBR for the emission unit. 35 IAC 201.520.
    A PBR expires one year from the date of submittal of the complete 
Notification unless a continuous program of construction on the project 
has commenced by that time. The owner or operator of the emission unit 
must submit an updated Fee Determination prior to commencing operation 
of the proposed emission unit if there is an increase in allowable 
emissions over the existing permitted allowable emissions as a result 
of the construction or modification of the emission unit. 35 IAC 
201.525.
    IAC Section 201.530 contains the recordkeeping and reporting 
requirements for the PBR program. This section requires the owner or 
operator to maintain all records used to demonstrate compliance with 
the applicable requirements of Subpart M and the applicable PBR Subpart 
for at least five years. The owner or operator must notify IEPA of the 
emission's unit's actual start-up date and submit written reports of 
deviations and any performance tests the owner or operator conducts.
    Before the proposed emission unit begins operation, the owner or 
operator must submit a complete application for a minor modification to 
the applicable title V permit to address the emission unit for 
incorporation into the title V permit. 35 IAC 201.535. Illinois' minor 
modification procedures for title V permits are found in Section 39.5 
of the Illinois Act, and parallel the Federal procedures in 40 CFR 
70.7(e)(2).
    The enforcement authorities for the Illinois PBR program are set 
forth in 35 IAC 201.540, which specifies that nothing in 35 IAC Subpart 
M limits IEPA's authority to seek penalties and injunctive relief for 
any violation of any applicable law or regulation, or the right of the 
Federal government or any person to directly enforce against owners and 
operators due to actions or omissions that constitute violations of 
permits required by the CAA or applicable laws and regulations. 
Additionally, this section identifies specific violations for which 
enforcement action may be taken, such as the failure to submit a 
complete Notification and/or minor modification to the applicable title 
V permit, and/or comply with the PBR general provisions and/or 
applicable PBR subpart.
35 IAC Part 201, Subpart N: Permit By Rule--Boilers Less Than or Equal 
to 100 MMBtu/hr
    Under Subpart N, an owner or operator may construct or modify 
certain types of boilers without obtaining a construction permit if the 
owner or operator meets and demonstrates compliance with the 
requirements of both Subparts N and M (PBR General Provisions).
    A PBR may be obtained under this subpart for the construction or 
modification of a boiler if, among other things: the boiler has a 
maximum design heat input capacity of less than or equal 50 MMBtu/hr; 
the boiler has a maximum design heat input capacity greater than 50 
MMBtu/hr but less than or equal to 100 MMBtu/hr and is equipped with 
low-nitrogen oxide (NOX) burners designed by the 
manufacturer to meet a NOX limit of not greater than 0.05 
lb/MMBtu; the boiler primarily burns pipeline natural gas, butane, 
propane, or refinery fuel gas; and the emissions from the boiler are 
comprised entirely of the products of fuel combustion. 35 IAC 201.600.
    In addition to the Notification requirements under Subpart M, 
owners or operators that plan to construct or modify an eligible boiler 
must include in the Notification, among other things: (1) 
Identification of the primary fuel that will be burned by the boiler, 
along with the maximum rated heat input capacity of the boiler (MMBtu/
hr); (2) whether the boiler would be a temporary boiler as defined by 
40 CFR 60.41c, and 63.7575 or 63.11237, a demonstration that the 
criteria for a temporary boiler are met and the expected period or 
periods in which the boiler would be at a location or locations at the 
source; (3) the potential emissions of individual pollutants from the 
boiler, including emissions of particulate matter (PM), PM less than or 
equal to 10 microns in diameter (PM10), PM less than or 
equal to 2.5 microns in diameter (PM2.5), NOX, 
sulfur dioxide (SO2), carbon monoxide (CO), and volatile 
organic material\1\ (VOM), based on continuous operation of the boiler 
at its rated heat input capacity, with supporting documentation and 
calculations; if the boiler will have the capability to burn diesel 
fuel, butane, propane, or refinery fuel gas, the potential 
SO2 emissions of the boiler from the use of such fuel; and 
4) if the boiler or the source at which the boiler would be located 
does not meet the applicability criteria in 35 IAC 217.150(a)(1)(A) or 
(a)(1)(B), an identification of the criteria that are not met, with 
explanation.\2\ 35 IAC 201.605.
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    \1\ IEPA uses the term volatile organic material interchangeably 
with volatile organic compounds. See 35 IAC 211.7150 for the 
definition of ``Volatile Organic Material (VOM) or Volatile Organic 
Compound (VOC).''
    \2\ 35 IAC 217.150 include NOX General Requirements 
that apply to sources in Illinois located in the geographical 
locations listed in 35 IAC 217.150(a)(1)(A) and meet the source 
category and NOX emissions criteria described in 35 IAC 
217.150(a)(1)(B).
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    Subpart N further requires owners and operators to comply with all 
applicable regulations for this type and size of boiler, including: New 
Source Performance Standards (NSPS); National Emission Standards for 
Hazardous Air Pollutants (NESHAP); and SIP requirements for opacity, 
CO, and NOX. The NSPS and NESHAP standards currently 
applicable to the types of boilers addressed by the PBR are the 
following: 40 CFR part 60 subpart A, Standards of Performance for New 
Stationary Sources; 40 CFR part 60 subpart Dc, Standards of Performance 
for Small Industrial-Commercial-Institutional Steam Generating Units; 
40 CFR part 63, National Emission Standards for Hazardous Air 
Pollutants for Source Categories: Subpart A, General Provisions; 40 CFR 
part 63 subpart DDDDD, National Emission Standards for Hazardous Air 
Pollutants for Source Categories for Major Sources: Industrial, 
Commercial and Institutional Boilers and Process Heaters; and 40 CFR 
part 63 subpart JJJJJJ, National Emission Standards for Hazardous Air 
Pollutants for Area Sources: Industrial, Commercial, and Institutional 
Boilers Area Sources. 35 IAC 201.610.
    The opacity and CO SIP requirements currently applicable to the 
types of boilers addressed by the proposed PBR include: Opacity limits 
and requirements at 35 IAC Part 212, Subpart B, and CO limits and 
requirements at 35 IAC 216.121.
    For NOX requirements, the owner or operator must comply 
with: (1) 35 IAC Part 217 Subparts D and E, if applicable; (2) 40 CFR 
subpart DDDDD, including the combustion tuning work practice 
requirements of 40 CFR 63.7540(a)(10), if applicable; and (3) for a 
boiler with a maximum design heat input capacity greater than 50 MMBtu/
hr, and that is not subject to either of the above provisions, the 
owner or operator must conduct annual combustion tuning consistent with 
40 CFR 63.7540(a)(10). 35 IAC 201.615, 201.620, 201.625, and 201.630.
    Additional requirements apply to a PBR boiler that burns diesel 
fuel or refinery fuel gas as a backup fuel. These include, among other 
things: compliance with all applicable provisions of 35 IAC Part 214, 
Subparts

[[Page 33897]]

B or D and 35 IAC 212.206; maintenance of records showing the date, 
time and duration of any period when diesel fuel was fired in the 
boiler, the amount of diesel fuel fired, the reason diesel fuel was 
fired, and the total duration of periodic operational testing or other 
activity while firing diesel fuel; and the actual SO2 
emissions of the boiler from use of diesel fuel. 35 IAC 201.620.
    The owner or operator of each PBR boiler must also maintain records 
containing the following information, in addition to the records 
required by Subpart M: (1) The maximum design heat input capacity of 
the boiler, inspection, maintenance, and repair logs; (2) quantity of 
each fuel used; (3) hours of operation; and (4) emissions of criteria 
pollutants (PM, PM10, PM2.5, NOX, CO, 
VOM, and SO2). 35 IAC 201.635.
Changes to Other Rules
    IEPA made changes to other SIP provisions that are affected by the 
addition of the PBR regulations. These include changes to 
abbreviations, definitions, and incorporation by reference, as 
described above, and include amendments to 35 IAC 201.103, 201.104, 
211.4720, and 201.146.
    IAC Section 201.103, which contains the definitions applicable to 
Part 201, has been revised to add terms and associated definitions used 
in the PBR regulations. The amendments include adding definitions and 
abbreviations (e.g., PBR, CAAPP, NSR, PSD, NSPS). IAC Section 211.4720, 
which also contains definitions that apply to Part 201, has been 
revised to add a definition for ``pipeline natural gas'' that is 
consistent with the Federal Acid Rain Program under the CAA and is used 
in the proposed Subpart N PBR regulations.
    Additionally, IEPA revised incorporations by reference at 35 IAC 
201.104 to reference the Federal NSR program at 40 CFR 52.21 (2015) and 
certain subparts of the NSPS and NESHAPs for source categories that are 
included in the PBR regulations.
    Finally, IEPA changed the abbreviation of ``mmbtu/hr'' to ``MMBtu/
hr'' in 35 IAC 201.146.

B. Rule Revision for Which EPA Is Taking No Action

    Illinois' final rule added subsection (mmm) to 35 IAC 201.146, 
which would exempt sources subject to the Registration of Smaller 
Sources (ROSS) program from the requirement to obtain construction or 
operating permits pursuant to 35 IAC 201.142, 201.143, and 201.144. By 
letter dated May 14, 2018, IEPA withdrew the amendments to 35 IAC 
201.146(mmm) for approval as SIP revisions because the ROSS program at 
35 IAC 201.175 is not part of the federally-approved SIP. Therefore, 
EPA is not taking any action with respect to 35 IAC 201.146(mmm).

III. What is EPA's analysis?

    EPA is proposing to approve Illinois' general PBR program contained 
in Subpart M, the PBR for boilers less than or equal to 100 MMBtu/hr 
contained in Subpart N, changes to other SIP rules affected by the PBR 
regulations, and minor changes in nomenclature because they meet all 
applicable requirements under the CAA.

A. The Revisions Are Consistent With Section 110(a)(2)(C) of the CAA 
and the Applicable Regulations

    According to IEPA, the purpose of the PBR program is to reduce 
administrative and economic burdens on both the agency and permit 
holders without sacrificing environmental protection. The PBR program 
should enable IEPA to address source categories of low emitting units 
with similar emission characteristics, so that it does not need to 
conduct an in depth review to determine the requirements and limits 
that apply to an individual source that has relatively low emissions. 
In this way, the PBR program accomplishes similar goals to minor NSR, 
i.e., authorizing requirements that are less prescriptive than NSR when 
the permittees are sources with lower emissions. The state's PBR 
program notification process makes it easier and more efficient for the 
reviewing authority to implement the PBR program compared to 
traditional site-specific permits. See, e.g., 80 FR 25068, 25071 (May 
1, 2015).
    For example, the PBR general provisions require the source to 
identify all construction permits and PBRs received within the last two 
years, and to demonstrate why the requested PBR should not be 
aggregated with and considered an element of these other projects. This 
approach is consistent with IEPA's federally approved minor NSR program 
(57 FR 59928, December 17, 1992). In those regulations, the 
construction of more than one emission unit within a short period of 
time by the same source will be analyzed cumulatively by IEPA, and must 
be considered for the applicability of major NSR (which would entail a 
PSD or NNSR review as appropriate).
    Furthermore, Illinois' PBR program should ensure that emissions of 
any criteria pollutant from a unit covered by a PBR will not exceed the 
``significance'' thresholds for PSD or NNSR. See 40 CFR 52.21(b)(23)(i) 
and 35 IAC 203.209. As part of the notification required to be 
submitted by a source seeking to construct or modify an eligible 
emission unit, the source must demonstrate that the potential emissions 
of each regulated NSR pollutant from the project will be less than 80 
percent of the relevant significant emission rates under Federal and 
state rules. Additionally, the PBR requires pollution controls for 
those units with a heat input rating greater than 50 MMBtu/hr but less 
than or equal to 100 MMBtu/hr. These boilers are required to install 
low-NOX burners to ensure that they will not emit 
NOX emissions in amounts greater than the level that would 
trigger a major modification subject to PSD or NNSR.
    IEPA conducted an analysis to demonstrate that the construction of 
any boiler under the PBR for small boilers should not yield emissions 
of criteria pollutants in amounts that would exceed major source 
significance thresholds triggering major NSR. For example, the maximum 
emissions of NOX from a l00 MMBtu/hr boiler with a low-
NOX burner designed to meet a limit of 0.05 lb/MMBtu 
operating at 8760 hours per year would be approximately 21.9 tons per 
year. This emission rate is approximately half of the significance 
threshold for triggering major NSR (i.e., 40 tons per year of 
NOX). Further discussion concerning potential emissions from 
PBR boilers may be found in section 4.1 of the May 2016 IEPA Technical 
Support Document included in Attachment 1 of the state's submittal.
    The general PBR provisions also contain specific criteria that 
limits the type of sources that may use the PBR and allow for permit 
authority review when the PBR requirements are incorporated into the 
source's title V permit. Sources that elect to use the PBR are required 
to apply for a minor modification to the title V permit prior to 
operation of the PBR unit to ensure that all applicable PBR 
requirements to the emission unit have been addressed. This ensures 
that the public understands the requirements to which the source is 
subject, and that IEPA receives and has the opportunity to review all 
relevant information regarding a sources' compliance with the PBR. 
Under Section 39.5(a)(v)(B) of the Illinois Act, IEPA has the option to 
deny the permit modification application, which provides an additional 
safeguard to the PBR program should IEPA identify any issues with the 
source's application.
    Additionally, IEPA has limited the type of unit that may be 
constructed under the PBR. The type of boilers

[[Page 33898]]

eligible to be constructed/modified under the PBR are common and 
contain well documented and similar emission characteristics, such as 
those documented in AP-42: Compilation of Air Pollutant Emission 
Factors, which provides emission factors for this size and type of 
boilers based on testing that has been performed over many years. See 
also, e.g., Potential to Emit (PTE) Guidance for Specific Source 
Categories, from John S. Seitz, Office of Air Quality Planning and 
Standards, dated April 14, 1998. The PBR provisions thereby ensure that 
these small boilers are subject to all applicable requirements, such as 
SIP emission limitations and requirements, and NSPS and NESHAP 
requirements, that would otherwise be included in individual 
construction permits for these types of boilers.
    For the above reasons, the proposed SIP revisions are consistent 
with the CAA's minor source permit provisions contained in section 
110(a)(2)(C) and EPA's minor NSR regulations at 40 CFR 51.160 through 
51.164. The PBR provisions enable the permitting authority to determine 
whether the construction or modification will result in a violation of 
applicable portions of the control strategy or interfere with 
attainment or maintenance of a NAAQS, as required by 40 CFR 51.160(a). 
Further, these provisions satisfy the provisions of 40 CFR 51.160(d), 
which require that approval of any construction or modification must 
not affect the responsibility of the owner or operator to comply 
applicable portions of the control strategy.
    EPA is also proposing to approve the changes to other rules 
affected by the PBR regulations, including revisions to definitions and 
incorporation by reference. The definitions update Illinois' rules to 
add terms and associated definitions used in the PBR regulations and 
are consistent with the SIP. EPA is proposing to approve amendments to 
IEPA's incorporation by reference regulation based on the understanding 
memorialized in a letter submitted by IEPA dated May 16, 2018. In that 
letter, IEPA clarified that its sole intention in using incorporations 
by reference is to reference, and not adopt, the Federal rules that are 
identified in the PBR rules at 35 IAC Part 201, Subparts M and N, 
including the Federal PSD regulations. Furthermore, in that letter, 
IEPA committed to continue implementing the most recent version of the 
Federal PSD program (40 CFR 52.21) and current EPA guidance consistent 
with the most recent PSD delegation agreement between EPA and IEPA.
    Finally, EPA is proposing to approve the change in nomenclature at 
35 IAC 201.146 from ``mmbtu/hr'' to ``MMBtu/hr'' because it is 
consistent with the CAA and SIP, and the use of that term merely 
reflects the use of that abbreviation in the state's regulations to 
mean pounds per million British thermal units.

B. The Revisions Do Not Interfere With Any Applicable CAA Requirement 
Under Section 110(l) of the CAA

    Under section 110(l) of the CAA, EPA shall not approve a SIP 
revision if the revision would interfere with any applicable 
requirement concerning attainment and ``reasonable further progress'' 
(RFP), or any other applicable requirement of the CAA. Therefore, EPA 
may approve a SIP revision that removes or modifies control measures in 
the SIP only after the state has demonstrated that such removal or 
modification will not interfere (``noninterference'') with attainment 
of the NAAQS, Rate of Progress (ROP), RFP or any other CAA requirement.
    IEPA has evaluated the impacts of the proposed revisions, and 
determined that they do not interfere with attainment of the NAAQS or 
any other CAA requirement because the use of the PBR provides the same 
level of, and, in some cases, additional control measures as the 
control measures that would be included in an individual construction 
permit for small boilers. IEPA has demonstrated that the PBR program is 
essentially a change to the process by which smaller sources with 
similar emission characteristics obtain authorization to construct.
    IEPA notes that the PBR for small boilers includes the requirements 
that would typically be included in an individual construction permit 
issued on a case-by-case basis under Illinois' minor NSR rules at 35 
IAC 201. This includes requirements such as the Federal emission 
standards (NSPS and NESHAP) and SIP requirements, including emission 
limitations, conditions for operation, and standard permitting 
conditions. Furthermore, IEPA points out that the PBR program does not 
exempt an emission unit from any air pollution emission limits or 
control requirements. Therefore, as discussed above, emissions of 
pollutants from sources complying with the PBR for small boilers should 
not result in an increase beyond what would result from construction or 
modification of these types of boilers through an individual minor NSR 
construction permit.
    IEPA has also shown that the PBR for small boilers may require more 
control measures than an individual construction permit in certain 
instances. For example, Illinois' minor NSR rules do not require an 
individual construction permit to contain boiler tune-up requirements 
or installation of low-NOX burners on every small boiler. 
The PBR for small boilers, however, does include boiler tune-up 
requirements and the requirement to install low-NOX burners 
designed to meet a NOX emission limit of not greater than 
0.05 lb/MMBtu for boilers with a heat input greater than 50 MMBtu/hr. 
Therefore, in some cases, the PBR may be more protective of air quality 
than an individual construction permit.
    Finally, the PBR provisions do not interfere with any existing 
environmental state or Federal enforcement authorities. If a PBR unit 
is found to be in violation of any applicable state or Federal rules, 
IEPA or EPA may pursue enforcement regardless of whether the source has 
a construction permit or constructed under the PBR provisions.
    Because the PBR rules should achieve equivalent or greater 
protection of air quality than individual construction permits for 
small boilers, noninterference has been demonstrated. Therefore, the 
adoption of the proposed PBR provisions will not interfere with 
Illinois' existing obligations concerning attainment of the NAAQS, RFP, 
or any other applicable requirement of the CAA, as required by section 
110(l) of the CAA.

IV. What action is EPA taking?

    EPA is proposing to approve Illinois' PBR program and the PBR for 
boilers less than or equal to 100 MMBtu/hr by adding 35 IAC Part 201, 
Subpart M and Subpart N. Specifically, EPA is proposing to approve into 
the Illinois SIP IAC Sections 201.500, 201.505, 201.510, 201.515, 
201.520, 201.525, 201.530, 201.535, 201.540, 201.600, 201.605, 201.610, 
201.615, 201.620, 201.625, 201.630, and 201.635.
    EPA is also proposing to approve the requested revisions to other 
rules affected by the addition of the PBR program, including additions 
and changes to definitions and incorporations by reference. 
Specifically, EPA is proposing to approve into the Illinois SIP the 
requested revisions to IAC Sections: 201.103(a) and (b); 201.104(a), 
(c), (d), and (e); and 211.4720. EPA is also proposing to approve into 
the Illinois SIP the requested changes in nomenclature at IAC Section 
201.146(c), (d), (h), (i), and (fff).
    EPA is not acting on the requested revisions to IAC Section 
201.146(mmm), because the revisions exempt sources

[[Page 33899]]

subject to the ROSS program from state construction and operating 
permit requirements, and the ROSS program is not part of the federally-
approved SIP.

V. Incorporation by Reference

    In this document, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference revisions to Title 35 of Illinois Administrative Code Part 
201: Permits and General Provisions, sections 201.103, 201.104 (except 
for 201.104(b)), 201.146 (except for 201.146(mmm)), 201.500, 201.505, 
201.510, 201.515, 201.520, 201.525, 201.530, 201.535, 201.540, 201.600, 
201.605, 201.610, 201.615, 201.620, 201.625, 201.630, and 201.635; and 
Part 211: Definitions and General Provisions, section 211.4720; 
effective March 24, 2017. EPA has made, and will continue to make, 
these documents generally available through www.regulations.gov and at 
the EPA Region 5 Office (please contact the person identified in the 
For Further Information Contact section of this preamble for more 
information).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: July 9, 2018.
Cathy Stepp,
Regional Administrator, Region 5.
[FR Doc. 2018-15252 Filed 7-17-18; 8:45 am]
 BILLING CODE 6560-50-P